How does our city compare to Columbia, Macon, others? Hint: Not well

Living in Moberly is expensive. And a local survey shows that the jobs in our community aren't paying residents as much as in the surrounding counties.

Back in late February of this year, Moberly City Manager Andy Morris, along with accountant Melissa Boots, conducted a "benchmark study," comparing the cost of living in the Magic City with that of 16 other Missouri cities (both locally and not). The results of the survey showed that Moberly was the second most expensive city to live in amongst those looked at — only slightly behind St. Joseph, with Mexico, Mo., hanging right on our coattails.

On average, a resident in Moberly spends 10.7 percent of their income on living expenses, the survey states.

To put that into perspective: Macon homes spend approximately 9.3 percent of their annual income on living costs, and Columbians spend a mere 8.7 percent. That's good enough for fifth- and ninth-most expensive on the list, respectively. Moberly comes in only behind St. Joseph's 11.2 percent cost of living —second to last.

The average Moberly household only brings in $36,882 a year. That is the third-lowest total of the 17 cities surveyed.

The report

Morris' report was based off of a similar study done by Harrisonville City Manager Keith Moody (although Moody's report, Morris notes, is much more "extensive" and digs "deeper" into living costs than his does).

Morris uses estimates for water and sewer costs, on top of property and sales tax figures for the cost of living, which is divided by the median annual household income to determine the percentage of income used to pay for living in said city.

Water and sewer costs are based upon a cost for persons using 5,000 gallons of water per month. Property tax rates are given per $28,500 assessed valuation, and $150,000 appraised property value. Sales tax rates were roughly figured by identifying median income in the county where each city is located, and then taking 70 percent of that figure, and identifying 30 percent as "being subject to sales tax." State, county, city and "other applicable local sales tax rates" were compiled from this number.

In the future, Morris told the MMI that he would like to do a report like this on an annual basis, to track the city's progress moving forward. He would like to expand the report to include separate storm water fees, among other additions.

Moberly's estimated annual sewer costs are the third-highest on the Morris list, at $654 spent per household each year. Chillicothe came out on top in this category, with residents only spending around $75 a year for the same services. Nearby, Macon's sewer costs were the worst, clocking in at around $50 higher than Moberly's — $702.36. Columbians spend $599.64 a year.

Property tax in our city was also the third-highest on the list, averaging $2,007.68 a year. Belton, at $2,476.65, held the highest rate, while a residency in Rolla only spends about half of that ($1,217.21) in property taxes. Macon had the third lowest property tax rate, at $1,516.26. Columbia was on the high end, though slightly cheaper than Moberly, at $1,895.25 a year.

Moberly water was about middle-of-the-pack in terms of cost. For one year of services, $504 was estimated. Chillicothe again came in with the low total in this category, tied with Rolla, at $294 for similar services. Mexico's water was the most expensive. An average household running costs approximately $781.92 there. Despite running the middle of the pack in terms of cost in this category, Moberly again fell behind fellow Hwy. 63ers Macon ($316.68) and Columbia ($408).

Estimated annual sales taxes paid put Moberly in its only cost category on the positive upper half of the survey, per Morris. Combined sales tax rates have the average household in Moberly paying $694.67 per year. That's good for seventh-lowest among the surveyed cities. Belton's sales tax tops the $1,000 line, at $1,126.21 per year, to take the most expensive spot. Vernon County's Nevada, Mo., pays the least in sales tax, at $608.08 a year. They pay about $3 more in sales tax per year in Columbia ($697.92), the city with multiple shopping malls, elementary and high schools, collegiate institutions, and parks, than we do in Moberly. Macon citizens pay $634.92 annually.

Morris also includes total annual cost numbers in his report (the sewer, water, and property and sales tax numbers added together). Belton residents (not surprisingly, considering the city's previously-mentioned high tax rates) pay the most per year out of the group: $4,805.36. Rolla residents, on the other end of the spectrum, pay just $2,581 a year in tax and water and sewer costs, combined (only about $100 a year more than Belton's property tax, alone).

Moberly's total cost amount is $3,956.85 a year. It is the second highest on the list, only behind Belton. Macon has the fifth-lowest total expense rate ($3,255.14). Columbia is four spots ahead of Moberly, at $3,684,78.

How much do we make compared to the other guys?

As previously mentioned, Moberly households bring home the third lowest income total compared to the 16 other cities surveyed by Morris.

Belton homes bring in the most dough — they, Sedalia, and Marshall were the only three to break the $50,000 per household line (at $57,368; $52,841; and $52,835, respectively). A majority of the cities listed were in the $30,000-40,000 bracket.

Macon households average $34,985 in income each year — good for second lowest on the Morris list behind St. Joseph ($32,015). They are just ahead of Moberly's $36,882 on the lesser-paid end of the spectrum.

Columbia homes make approximately $42,202 a year. Boonville averages $39,821. Mexico comes in just below that, at $37,537.

What are we doing to make it better?

Morris notes in his study that "to improve Moberly's ranking the [household] income must increase and [their] costs must decrease" citywide. He points to the high sewer and property tax rates, specifically, in this all-encompassing "cost" bubble, but notes that property and sales taxes "determine nearly three quarters of [household] expenses, while utilities drive less than one third."

Editor's Note: The MMI recently sat down with Morris to discuss his report. We asked him why and how our city costs became so high, how the City of Moberly believes they can successfully market a city with such a high cost of living, and what the city is actively and specifically doing to decrease the living burden for its residents. Check next week's Monitor-Index for the interesting results of that one-on-one.